Suppose that Big Bad Company (BB) is an existing firm producing bricks. New Entrant (NE) is a potential new entrant in the brick
market. Big Bad says that if NE enters, then it will force them out of the market. Specifically, if BB keeps NE out of the market, it will
earn $100 million in revenue. If NE enters and BB fights, BB will earn $-25 million and NE will earn $ 25 million. If NE enters and BB
does not fight, BB will earn $50 million and NE will earn $50 million
Complete the blanks in the figure, where the terminal nodes c through i indicate the revenue earned by each specific firm:
a. = (Click to select)
b. = (Click to select) c.=
d.=. e.=. f.=
h.=
I.=
New Entrant (NE) should (Click to select)